A proposed 32-unit apartment complex in Sioux Falls for the chronically homeless that was projected to cost about $5 million now is closer to $3 million, according to the architect.

Larry Crane of Perspective Inc. told Minnehaha County commissioners Tuesday that modifications to the original scheme for Project Safe Home have reduced the cost but will not compromise the goal of providing permanent housing and case-management services for residents.

Much of the dollar savings for the new apartment complex will be gained by reducing square footage and changing construction materials, Crane said. Originally, the building would have featured independent apartment units. the new plan calls for studio apartments with kitchenettes, but residents will share bathrooms.

Also, plans to construct a building resistant to damage that would have required minimal maintenance have been scaled back.

“We’ve gone from concrete cast to wood frame,” Crane said. the building now will be more susceptible to scratches and gouges and will require regular painting. however, structurally it remains very sturdy, he said.

“We needed to get the price down, but it will be harder to maintain,” Commissioner Carol Twedt said.

Price became an issue for the county when the city of Sioux Falls last year pulled out of an anticipated partnership with Minnehaha County to build Project Safe Home. the county has sought to attract contributions and grants to offset at least a portion of that lost money.

Commissioners also hope to use tax credit financing from the federal government issued through the South Dakota Housing Development Authority to build the apartment complex. the county’s proposal to the authority becomes more attractive if the overall price of the project is reduced, Twedt said.

Commission Chairwoman Anne Hajek said the county should learn by the end of May whether it qualifies for the tax credits.

The apartment complex will be built on land the county owns at third Street and North Minnesota Avenue. it is designed to aid persons most at risk of becoming homeless, many because of long-standing substance abuse or behavioral problems. Such individuals typically cost the county about $32,000 a year in indigent and detox services.

In a pilot project begun in 2008 that offered housing and case management to 20 chronically homeless people, those average costs were reduced to $16,259, according to Human Services Director Hugh Grogan.

Reach Peter Harriman at 575-3615.